Insiders at Cel-Sci Corporation (AMEX:CVM) had been buying shares at open market prices just days before a vastly under researched story hit the news wires on Friday. Rumors about thelatest report filings with the SEC had begun to spread and had prices for shares significantly rising above market close last Thursday after hours, but enthusiasm for the stock was dampened when the hit piece from the Street.Com took aim at them.
If you watch patterns, you've seen the same type of "bullish" insider buying activity take place on countless other occasions, but perhaps the most recent example comes from Human Genome Sciences (NASDAQ:HGSI) just days before news about BENLYSTA made shares jump significantly.
Specific details about a number of upcoming catalysts have yet to be disclosed by the company, but readers of this space know that the Cel-Sci has several pending news items due, including the unveiling of their new state-of-the-art cold fill laboratory, any number of announcements regarding their newly (FDA) fast-tracked H1N1 flu treatment human studies as well as official news about the launch of Phase III studies for Multikine.
Multikine is the company's multi-targeted, cancer immunotherapy which performed well in Phase II, but had been sidelined while said laboratory was being built to accommodate the production of the sensitive and complex biologic drug candidate platform.
Those looking for "tells," certainly point to news about the new laboratory as one such positive indicator. Would a publicly traded company spend a rumored $20-$25 million on a new lab to produce a their cancer vaccine if they didn't have enough scientific proof that the drug would perform well in Phase III? The United States Food and Drug Administration (FDA) certainly concurred with the initiation of a global Phase III clinical trial in head and neck cancer patients using Multikine back in January 2007, so this development would qualify as long awaited good news for the stock.
Upcoming news might also be related to the company's inclusion in the latest Vaccine Identification Standards Initiative. The office of the Chief Science Officer for the CDC has just added Cel-Sci to his comprehensive list of vaccine and biologics manufacturers and distributors. The company did not appear on documents previously released by the Centers for Disease Control and Prevention.
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